Renewable energy entrepreneurs and investors have welcomed Alistair Darling’s support of the sector in his pre-Budget report.
Renewable energy entrepreneurs and investors have welcomed Alistair Darling’s support of the sector in his pre-Budget report.
The tax exemption for income from renewable energy micro-generation won particular praise. Steve Mahon, chief investment officer at cleantech investor Low Carbon Accelerator, says, ‘When you combine the tax exemption with feed-in tarriffs [through which the government will guarantee prices for renewable energy], it’s a powerful combination and will be quite significant to the low-carbon market.’
Adds Mahon, ‘I think we’ll see a lot of individuals installing micro-generators on their homes and farms in the coming years.’
Juliet Davenport, CEO and founder of green energy company Good Energy, also welcomes the move but is disappointed that Darling remained silent on how feed-in tarriffs will be implemented.
She comments, ‘These tarriffs are due to be introduced next year and businesses like ours are still looking to the government for a steer in terms of what we need to get on with to achieve all this.’
Other green measures announced in the pre-Budget report include a scrappage scheme for inefficient boilers and a tax break for electric vehicles used as company cars.
Says Davenport, ‘It’s great that they’re encouraging the use of electric vehicles but it has to be zero-carbon electricity, otherwise it won’t help reduce carbon emissions except on a local level.’
